Create Allowance Rule Sets
You can use PR Allowance Rule Sets to create allowance rule sets, along with the associated rules that determine how the system calculates payroll allowances.
Calculations are based on days/time period worked by the employee, the minimum hours (threshold) the employee must work to receive the allowance, the specified calculation method (rate or amount), and a factor if you are using a percentage rate to determine the allowance amount. For more information on how allowances are calculated, see How the System Processes Allowances.
The following instructions detail how to set up allowance rule sets and their associated rules.
- In PR Allowance Rule Sets, enter the name for the rule set in the Allowance Rule Set Name field. Press F4 for a list of rule sets.
- Enter a description for the rule set in the Description field.
- From the Rule Period drop-down, select a period type for this rule set. You can select either Daily or Weekly. The choice you make determines whether the rule threshold number is based on an entire week, or one or more specific days in a week. You cannot change the Rule Period drop-down if there are rules associated with the rule set.
- In the detail section of the form, enter a rule name in the Rule field and a description for the rule in the Description field.
- Check the day boxes that this rule applies to (Sunday, Monday, Tuesday, etc.). If the rule period for this set is Weekly, the checkboxes will be disabled; in this case, proceed to the next step. If this is a rule for holiday allowances, check the Holiday box. In this case, the system will disable all other day boxes, and vice versa.
- In the Threshold Hrs field, enter the minimum number of hours that the employee must work for the specified period in order to receive an allowance.
- Select a calculation method from the Calc Method field. You can choose to have the system use a rate (R - Rate Calculation), hourly amount (H - Hourly Amount), or a flat amount (A-Amount). The system disables the Factor field if you select either H - Hourly Amount or A - Amount.
- Enter either the rate or amount in the Rate/Amount field. When entering an amount, use a dollar value (25.00). When entering a rate, enter a value between 0.00 and 1.00 (with 1.00 representing 100% of an hour); -that is, the percentage of an hour of pay that will be awarded as an allowance.
- If you are using a rate calculation, enter the factor in the Factor field, otherwise proceed to the next step. The system will use the number you enter here to multiply the rate for this calculation. For more information, see How the System Processes Allowances.
- If there is a maximum allowance amount that an employee can receive for a time period, select the type of time period from the Max Amount Period drop-down: Daily or Weekly. In the Max Amount field, enter the maximum amount that the employee should receive. For more information, see How the System Processes Allowances.
- Repeat steps 4 through 10 for any additional rules that you want to add to the rule set.